New York, August 11, 2026, 09:40 EDT
- eToro has reached a deal to acquire TradeZero, with the transaction valued at as much as $231 million in cash and shares.
- Adjusted earnings for the second quarter reached $0.68 per share, surpassing the $0.61 estimate from LSEG.
- Equities overtook commodities as the primary source of trading income.
- TradeZero reported revenue of approximately $80 million over the previous 12 months.
eToro Group NASDAQ:ETOR surpassed analysts’ quarterly profit forecasts and has reached an agreement to acquire TradeZero for as much as $231 million. The acquisition offers the retail broker an accelerated entry into active U.S. trading.
The combination is significant since eToro continues to rely heavily on its presence in Europe and Britain. TradeZero brings a U.S.-centric client base and trading platform at a time when retail traders remain engaged amid market volatility.
The quarter demonstrated the rapid shifts in activity. Commodities took the lead at the start of 2026, but equities powered the most recent advance.
Net trading income generated from equities, commodities, and currencies increased by 24% to $141.6 million. Over 60% of users who traded commodities in the past two quarters also traded equities in the second quarter.
Chief Executive Yoni Assia said, “Today’s announcement is an important step in building our US business. This combination gives us a faster path to launching new products for US customers and strengthens our offering.” Reuters
Adjusted earnings have surpassed LSEG projections for the third consecutive reported quarter. The most recent beat was less pronounced compared to the first quarter, as actual earnings per share declined from the previous period.
| Reported quarter | Adjusted EPS | LSEG estimate | Beat |
|---|---|---|---|
| Q4 2025 | $0.71 | $0.63 | 12.7% |
| Q1 2026 | $0.91 | $0.73 | 24.7% |
| Q2 2026 | $0.68 | $0.61 | 11.5% |
Company-reported adjusted EPS and contemporaneous LSEG consensus forecasts are used for earnings comparisons. Percentage beats are derived from these numbers.
Trading revenue has shown more fluctuation compared to the consistent profits. Each quarter reflected a separate phase of the market cycle.
| Period | Capital-markets metric | Year-on-year change | Main signal |
|---|---|---|---|
| Q4 2025 | $115.6 million net trading income | +43% | Commodity performance and shift from crypto assets |
| Q1 2026 | $166 million net trading contribution | +71% | Commodities accounted for roughly 60% of commission revenue |
| Q2 2026 | $141.6 million net trading income | +24% | Equities took the lead as key growth sector |
Reuters stated that commodity trading volumes for the first quarter surged to almost four times higher than a year ago. In the following quarter, those clients shifted into equities. This trend across different asset classes underpins eToro’s multi-asset value proposition, though it also links the platform’s earnings to swings in market volatility.
The TradeZero deal sets the price at roughly 2.9 times the target’s trailing revenue, based on a straightforward revenue multiple rather than an earnings-based valuation.
| TradeZero transaction item | Verified figure | Investor read-through |
|---|---|---|
| Maximum consideration | $231 million | Mix of cash and stock |
| Trailing 12-month revenue | About $80 million | Indicates present business size |
| Maximum price / revenue | About 2.9x | Based on public information |
| Expected closing | First half of 2027 | Transaction is still subject to regulatory and deal completion risks |
| Expected profit effect | Accretive in first year | Company sees a positive impact, though not official guidance |
TradeZero, established in 2015, provides services to active traders across the United States, Canada, and additional markets. eToro rolled out its U.S. platform in 2019; however, its main focus continues to be on Europe and Britain.
The purchase secures more than just additional revenue; it brings in an active-trader product lineup and boosts operational capacity in a market where eToro’s scale has previously been limited.
The latest comparable period shows eToro maintains balance-sheet capacity. By the end of June 2025, the company reported $1.2 billion in cash, cash equivalents, and short-term investments. At that time, eToro had 3.63 million funded accounts and $17.5 billion in assets under administration.
Risks: The agreement is subject to closing requirements, and the payout might hit its maximum limit. Trading revenue may decline if volatility subsides. Competition in the U.S. continues to be strong.
The next step is execution. Investors require proof that eToro will finalize the deal within the first half of 2027, accelerate the launch of U.S. products, and achieve the expected profit increase in the first year.
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